Opportun Completes 3rd Securitization of Consumer Loans

Oportun, a nonbank lender that targets Latino consumers, has completed its third securitization.

The Redwood City, Calif. company closed on the issuance of $112 million of two-year bonds secured by a pool of its installment loans in January.

The bonds, which were not rated, were placed with a diversified mix of institutional investors in a private offering, the company said in a Feb. 24 press release. Jefferies served as the sole book running manager.

In an email, chief financial officer Jonathan Coblentz said that the blended coupon on the latest transaction was just below 4%. He said this was comparable to pricing on its two previous deals, completed in 2014 and 2013.

Securitization isn’t Oportun’s only funding source. In November, it completed a $70 million sale of whole loans to a subsidiary of Ellington Management Group via 12-month flow agreement. As part of the loan sale, Oportun retains all rights and obligations involving the servicing of the loans.

"Our advanced data analytics and technology enable us to accurately identify thin and no file applicants who are able and willing to repay loans matched to their circumstances. These distinct transactions validate our approach to providing affordable and accurately underwritten small dollar loans for the financially underserved,” Oportun CEO Raul Vazquez said in the Feb. 24 press release.

Oportun operates 130 locations in California, Illinois and Texas. Since making its first loan in 2006, the firm has lent out more than $1.3 billion.

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